The decision has been made: The Pôle Horloger including Parmigiani Fleurier will not be sold

For some time now, there had been rumors that the Sandoz Foundation would offer the so-called Pôle Horloger for sale. There had never been any official announcement about this, but nevertheless—or perhaps because of this—the rumor mill was in full swing.

Picture left: Antje Heepmann visiting the Manufacture Fleurier in 2023.

To the point of speculation that the luxury goods group is interested in the collection of specialists for watch parts and movement production as well as the Parmigiani Fleurier brand.

The French company couldn't be blamed for this. At the end of last year, Frédéric Arnault (then head of the LVMH watch division) made the following statement to the Swiss Handelszeitung:

"It's true that we have very good relationships there. But due to our industrial setup, which is already consistent, there's no interest in Vaucher, so we haven't made an offer."

This made it clear that the Sandoz Foundation had made a purchase offer. The foundation has now confirmed this to some Swiss and French media outlets. However, it has now decided to retain the watch division. Whether a buyer simply could not be found or whether changed circumstances led to this decision was not explained.

Pôle Horloger Competence Center

These include the case manufacturer Les Artisans Bôitiers and the dial producer Quadrance et Habillage in La Chaux-de-Fonds, as well as Atokalpa, a specialist in all gear train components, and Elwin, a manufacturer of turned parts and specific, complex components that require the highest precision.

Added to this is the renowned Vaucher Manufacture Fleurier. The manufactory develops mechanical watch movements with manual and automatic winding, as well as additional modules. It produces movements for the Parmigiani Fleurier brand, which is part of the Pôle Horloger (Watchmaking Pôle), as well as for other luxury watch brands such as Audemars Piguet, Richard Mille, Hermès, and TAG Heuer.

Hermès may increase its stake in Vaucher Manufacture

There is one change, though. The Hermès Group has held a 25 percent stake in the watch movement specialist since 2006 and could now expand its stake under certain conditions, according to the French daily newspaper Le Temps.

Commitment to the Swiss economy …

...and to the future of the industry as a whole. This is the official reasoning behind the decision to keep the Pôle Horloger as part of the Sandoz Foundation.

After carefully examining the takeover opportunities with potential buyers, the foundation's management decided not to sell the watch division, but rather that it should be "managed independently in the interest of customers and the Swiss watch industry," according to a statement last week.

In addition, in recent years, “realistic prospects” have emerged for the Pôle Horloger to “reverse the seriously deficit situation”.

In the case of Parmigiani Fleurier, this is certainly also due to Guido Terre, who has led the watch brand as CEO since 2021 and has provided extremely positive impetus, especially with the launch of the “Tonda PF” collection.

The Sandoz Foundation now confirms the improved financial health and good development prospects despite the difficult economic situation.

However, the takeover talks revealed that the historical legal structure of Pôle Horloger would not have allowed a transfer "under normal market conditions." Therefore, the decision was made to continue the business within the foundation.

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The origins of the Sandoz Foundation go back to the Sandoz family, who founded the chemical company Sandoz in Basel in 1866.